With the ever growing sentiment of an economic recovery from COVID-19 despite growing cases in Europe. This will in the long term drive up Cable. Furthermore, with the current lax approach by the ECB, the Euro is benefiting greatly. The pair will face some turbulence depending on any further announcements by the Federal Reserve before the United States’ General Elections slated for November this year. However, despite the upcoming elections, it seems that the Federal Reserve may not make any policy changes prior.
The pair continues to float in an upward trend towards a strong resistance at 1.1920. It may head north following another test of the trending support line. Overall, the sentiment is bullish.